New Gadgets, Incorporated, currently pays no dividend but is expected to pay its first annual dividend of $5.15 per share exactly 6 years from today. After that, the dividends are expected to grow at 4 percent forever. If the required return is 11.8 percent, what is the price of the stock today?

Answer rating: 100% (QA)

P0 D1 r g Where P0 is the price of the stock today D1 ... View the full answer